Is Now The Time To Put Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.

Check out our latest analysis for Qatar Islamic Bank (Q.P.S.C.)

How Fast Is Qatar Islamic Bank (Q.P.S.C.) Growing?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Qatar Islamic Bank (Q.P.S.C.) managed to grow EPS by 10% per year, over three years. That's a good rate of growth, if it can be sustained.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It's noted that Qatar Islamic Bank (Q.P.S.C.)'s revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. EBIT margins for Qatar Islamic Bank (Q.P.S.C.) remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 14% to ر.ق7.8b. That's progress.

You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Qatar Islamic Bank (Q.P.S.C.)'s future profits.

Are Qatar Islamic Bank (Q.P.S.C.) Insiders Aligned With All Shareholders?

Owing to the size of Qatar Islamic Bank (Q.P.S.C.), we wouldn't expect insiders to hold a significant proportion of the company. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Indeed, they have a considerable amount of wealth invested in it, currently valued at ر.ق3.3b. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.

Does Qatar Islamic Bank (Q.P.S.C.) Deserve A Spot On Your Watchlist?

As previously touched on, Qatar Islamic Bank (Q.P.S.C.) is a growing business, which is encouraging. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. Now, you could try to make up your mind on Qatar Islamic Bank (Q.P.S.C.) by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry.

There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a free list of them here.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.